Italy's Stefanel in talks to cede majority stake to Oxy, Attestor

Struggling Italian clothing company Stefanel said on Friday it was in talks with private equity funds Oxy Capital and Attestor Capital over a deal that would hand them majority ownership of the group.

Stefanel

In a statement, the company said that its creditor banks had raised no objections so far to a possible deal, although an agreement had not been finalised yet. The banks would also become shareholders in the company through a debt-to-equity swap, it said.

The fashion group accumulated over 170 million euros 181 million) in losses over the last decade while attempting to reach out to mid-range clients while surviving competition from high-street brands like H&M and ITX.MC.

Stefanel said the accord would only go through if the Italian market watchdog would lift Oxy Capital and Attestor Capital from having to launch a full takeover bid on the Treviso-based company.